The 3rd U.S. Circuit Court of Appeals upheld a decision by federal Judge Berle M. Schiller, who had dismissed the lawsuit.

Philadelphia filed its lawsuit in April 2000, joining more than 30 cities and counties that sued gun manufacturers. Many of those lawsuits also have been dismissed.

The Philadelphia lawsuit claimed gunmakers failed to provide sufficient safety devices; flooded the market with cheap guns knowing many would be used in a crime; and knowingly supplied disreputable dealers.

The city wanted reimbursement for police and emergency services and sought to force gunmakers to add safety features and change how the weapons are marketed.

The city has not decided whether to appeal, said Bill Thompson, an official in the city's law department.